Is the sale of Royal Mail off?
Over the last few days there has been increased speculation regarding the government's ability to push through significant changes at Royal Mail. Under the leadership of Lord Mandelson, only a few months ago the government announced plans to sell off a 30% stake, with a number of overseas buyers apparently interested. However, as Gordon Brown's leadership is yet again called into question it has been revealed that potential buyers of the 30% stake may be stalling on a deal.
Unions have been mounting a significant campaign against part privatisation of the Royal Mail which they believe would be detrimental to many of their members in the short, medium and longer term. Significant changes to salary, working conditions and pension arrangements were feared although if the deal stalls, or is called off, there are still many questions to be asked regarding the future of Royal Mail. This is a business which is losing literally millions and millions of pounds a year and has been slow to react to the new age of technology.
While some believe the cancellation of the part privatisation programme could sound the death knell for Gordon Brown, if overseas buyers fail to appear then there is no other alternative.
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